Joint-product A, and B were processed in a single process at a total cost of $5,000. Product A can be sold for $3,000 at the split-off point, or processed further at a cost of $800 and then sold for $4,000. Product B can be sold for $1,200 at the split-off point, or processed further at a cost of $600 and sold for $1,700. Which of the joint product should be processed further? Select one: O a. Neither of the product O b. Both product O c. Product B O d. Product A tao ABC Company Produces and sells three Products - A, B, C. Product A Product B Product Total Sales $100,000 $200,000 $300,000 $600,000 Less Cost of goods sold 80.000 150.000 200,000 430,000 Gross margin 20,000 50,000 100,000 170,000 Less Operating 30.000 70.000 70,000 170,000 expenses Net operating income $(10,000) $(20,000) $30,000 $0 For each segment, 40% of its cost of goods sold and operating expenses are variable expenses and the remaining balances are fixed expenses. Total fixed expenses (operating and manufacturing) were allocated to each segment as follows: Fixed Expenses Allocated to Each Segment Product A $0 Product B $50,000 Product $70,000 tao How much is the total cost that the company can save, if Product A was dropped? Select one: O a. $110,000 Ob. $100,000 O c. $90,000 Companies often have opportunity to sell products under special circumstances that don't affect their regular sales. Under such circumstances the special order should be accepted if. Select one: a. Fixed selling and administrative costs will not be affected. O b. Selling price of the special order is higher than the company's regular selling price. O c. Incremental revenue from special order exceeds its incremental cost. O d. Manufacturing cost of the special order is lower than the manufacturing costs of company's regular sales. For each segment, 40% of its cost of goods sold and operating expenses are variable expen the remaining balances are fixed expenses. Total fixed expenses (operating and manufact were allocated to each segment as follows: Fixed Expenses Allocated to Each Segment Product A $20,000 Product B $50,000 Product C $70,000 tao What would be the effect on the company's overall profit, if Product B was dropped? Select one: O a. Overall company's profit will decrease by $30,000. O b. The overall company's profit will increase by $20,000. O c. Overall company's profit will increase by $90,000. O d. Overall company's profit will increase by $50,000. M Company produces three products A, B, and C. You are provided with following particulars: Product A Product B Product C $120 $100 $150 25% 30% 20% Selling price Contribution margin ratio Machine hours per unit Demand for one month 7.5 hours 12.5 hours tao 12 hours 2,000 units 4,000 units 1,000 units If the total machine hours available for production is 65,000 hours and total fixed cost is $180,000 per month, how many units of each product should be produced and sold in order to get maximum profit, if it makes optimal use of the its available machines hours? Select one: O a. Product A 2,000 units only O b. Product A 2,000 units and Product B 4,000 units c. Product A 2,000 units; Product B 4,000 units; and Product C 500 units O d. Product A 2,000 units; Product B 4,000 units; and Product C 1,000 units Halley Company produces 2,000 parts each year that are used in one of its products. At this level of activity. variable production cost is $7.50 per unit and fixed production cost is $9 per unit. The part can be purchased from an outside supplier at $10 per unit. If the part is purchased from the outside supplier, one-third of the fixed production costs applied in the production of the parts can be eliminated. How much would be the total effect on the company's operating income if the parts were purchased? Select one: a. $2.250 increase O b. $10,500 decrease O c. $6,000 decrease O d. $7.000 increase